Nalco, DLF among top gainers as metal and real estate stocks rise up to 5%; what's driving the rally?

Shares of metal and real estate companies surged in early trade on Tuesday, as renewed optimism around global demand and festive season momentum lifted investor sentiment across these sectors.

Both Nifty Metal and Nifty Realty indices led the market gains, comfortably outperforming broader benchmarks. Analysts attributed the strength to a mix of improving fundamentals, positive global signals, and investor positioning ahead of the seasonally strong period for consumption and infrastructure-linked plays.

Metal stocks rally on global momentum, local demand outlook

Metal stocks rose sharply as global commodity prices showed signs of stability after recent weakness. With China gradually opening its purse strings to support infrastructure, and global manufacturing indicators stabilising, Indian metal majors are finding tailwinds once again.

Shares of Tata Steel, JSW Steel, Hindalco, and Vedanta were among the notable gainers. According to dealers, short covering and renewed interest from institutional desks also contributed to the move.

“There’s some buying coming in after a stretch of underperformance. If demand trends improve globally, margin pressures could ease for metal producers,” said a senior analyst at a domestic brokerage.

Real estate stocks ride on festive hopes

Realty stocks too saw strong action, as expectations for robust housing demand during the upcoming festive season gained traction. Developers have been signalling steady sales momentum in recent quarters, and investors seem to be pricing in a strong finish to the year.

Stocks like DLF, Macrotech Developers (Lodha), Sobha, and Godrej Properties were up between 3 to 7 per cent in early trade.

Market participants say both sectors could remain in focus in the near term, particularly if macroeconomic conditions remain stable and investor appetite continues to improve.